SAN JOSE—A variety of fund consolidations, expansions and closings have hit the Bay Area recently, some of which will have an impact on local development or advance technology platforms and others will transfer valuations elsewhere. This roundup of fund announcements provides a glimpse into the latest activity for some of the Bay Area's most active participants.
Carmel Partners reports the final close of its US multifamily real estate value creation fund, Carmel Partners Investment Fund VI. The fund closed at $1.025 billion, exceeding its target of $1 billion. With the closing of Fund VI, Carmel Partners has successfully raised $4.2 billion since inception of the fund series in 2004. More than 35 existing and new investors participated in Fund VI, including several European investors. Carmel Partners focuses on multifamily investments, including property development and construction in supply-constrained high barrier-to-entry US markets. Fund VI has already made its first investment in Oakland. Carmel will develop a full block-sized site located in the center of the evolving downtown area, convenient to jobs and public transportation.
US Capital Partners Inc. chairman and CEO Jeffrey Sweeney launched the US Capital Residential Real Estate Income Fund through the firm's private investment and asset management division, US Capital Investment Management LLC. The general partner's aim in creating the fund is to deliver attractive risk-adjusted returns to its limited partner investors, redeemable in cash every quarter, primarily by making senior-secured debt investments in residential real estate in the United States, either directly or indirectly through highly promising residential real estate funds and residential real estate development and operating companies.
Prologis Inc. reported the consolidation of its Europe Logistics Venture 1, a joint venture with Allianz, with its Prologis Targeted Europe Logistics Fund, a pan-European core open-end fund. Under the terms of the transaction, this will include the acquisition of Europe Logistics Venture 1 with a real estate value of €571 million and integrate its assets into the targeted Europe logistics portfolio. As part of the transaction, the Europe logistics fund has acquired an additional asset from Prologis and Allianz has purchased Prologis' 15% stake in the Europe logistics fund. Prologis will also receive net cash proceeds of approximately €183 million. With the addition of Allianz, the fund will have approximately 40 investors, including Prologis. The transaction will give the targeted Europe logistics fund a more agile balance sheet, diversification benefits and an expanded relationship with Allianz, a blue chip investor, says Prologis.
Nexera Holding LLC, a technology-enabled residential mortgage lender, says that funds affiliated with Warburg Pincus, a global private equity firm focused on growth investing, have agreed to make a significant growth investment in the company. The investment will be used to further advance Nexera's technology platform and accelerate its expansion plans. Terms of the transaction were not disclosed. Nexera operates under two national brands: Newfi for consumer-direct business and Blustream for wholesale lending. Newfi is a five-star rated lender that simplifies borrowing and reduces costs through its secure and streamlined mortgage lending technology. Blustream is focused on providing its wholesale partners with consistently low pricing and a growing range of innovative lending products.
As a sidenote, two recent global cities reports from JLL place Silicon Valley firmly in the forefront of the most dynamic and fastest-changing US markets and also give the region a high global ranking. Silicon Valley is number three on JLL's global city momentum index (behind Bangalore, India and Ho Chi Minh City) and the number one new world city on JLL's global investment outlook, GlobeSt.com learns.
This index tracks the world's fastest changing and most dynamic cities based on the embrace of technological change, ability to absorb rapid population growth and global connectivity. These cities excel in high tech and high-value industry sectors, have robust infrastructure and attractive livability, and deliberately focus on a limited number of global specialties. Silicon Valley placed ahead of Austin (number 7), Boston (number 9), Seattle (number 20), San Francisco (number 21) and Raleigh Durham (number 24) among US markets. New world cities are not yet established world cities such as London, New York, Paris and Los Angeles, says JLL.
One major impact on Silicon Valley stemming from its high placement in rankings such as JLL's index is a growing appeal among commercial real estate capital sources–both foreign and domestic—looking for investment opportunities. This, in turn, is likely to boost real estate transaction activity in the region this year.
As previously reported, $100 million-plus loans have a short lender list.
SAN JOSE—A variety of fund consolidations, expansions and closings have hit the Bay Area recently, some of which will have an impact on local development or advance technology platforms and others will transfer valuations elsewhere. This roundup of fund announcements provides a glimpse into the latest activity for some of the Bay Area's most active participants.
Carmel Partners reports the final close of its US multifamily real estate value creation fund, Carmel Partners Investment Fund VI. The fund closed at $1.025 billion, exceeding its target of $1 billion. With the closing of Fund VI, Carmel Partners has successfully raised $4.2 billion since inception of the fund series in 2004. More than 35 existing and new investors participated in Fund VI, including several European investors. Carmel Partners focuses on multifamily investments, including property development and construction in supply-constrained high barrier-to-entry US markets. Fund VI has already made its first investment in Oakland. Carmel will develop a full block-sized site located in the center of the evolving downtown area, convenient to jobs and public transportation.
US Capital Partners Inc. chairman and CEO Jeffrey Sweeney launched the US Capital Residential Real Estate Income Fund through the firm's private investment and asset management division, US Capital Investment Management LLC. The general partner's aim in creating the fund is to deliver attractive risk-adjusted returns to its limited partner investors, redeemable in cash every quarter, primarily by making senior-secured debt investments in residential real estate in the United States, either directly or indirectly through highly promising residential real estate funds and residential real estate development and operating companies.
Nexera Holding LLC, a technology-enabled residential mortgage lender, says that funds affiliated with Warburg Pincus, a global private equity firm focused on growth investing, have agreed to make a significant growth investment in the company. The investment will be used to further advance Nexera's technology platform and accelerate its expansion plans. Terms of the transaction were not disclosed. Nexera operates under two national brands: Newfi for consumer-direct business and Blustream for wholesale lending. Newfi is a five-star rated lender that simplifies borrowing and reduces costs through its secure and streamlined mortgage lending technology. Blustream is focused on providing its wholesale partners with consistently low pricing and a growing range of innovative lending products.
As a sidenote, two recent global cities reports from JLL place Silicon Valley firmly in the forefront of the most dynamic and fastest-changing US markets and also give the region a high global ranking. Silicon Valley is number three on JLL's global city momentum index (behind Bangalore, India and Ho Chi Minh City) and the number one new world city on JLL's global investment outlook, GlobeSt.com learns.
This index tracks the world's fastest changing and most dynamic cities based on the embrace of technological change, ability to absorb rapid population growth and global connectivity. These cities excel in high tech and high-value industry sectors, have robust infrastructure and attractive livability, and deliberately focus on a limited number of global specialties. Silicon Valley placed ahead of Austin (number 7), Boston (number 9), Seattle (number 20), San Francisco (number 21) and Raleigh Durham (number 24) among US markets. New world cities are not yet established world cities such as London,
One major impact on Silicon Valley stemming from its high placement in rankings such as JLL's index is a growing appeal among commercial real estate capital sources–both foreign and domestic—looking for investment opportunities. This, in turn, is likely to boost real estate transaction activity in the region this year.
As previously reported, $100 million-plus loans have a short lender list.
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